‘Hyve experienced another strong quarter with gross billings increasing by more than 50 percent year over year and ODM/CM [original design manufacturing and custom manufacturing] gross billings increasing 39 percent year over year, driven by sustained broad-based demand in cloud data center infrastructure from our hyperscaler customers,’ says Patrick Zammit, president, CEO and director of TD Synnex.
A booming growth in the Hyve business of TD Synnex lifted the IT distribution powerhouse to record fourth fiscal quarter revenue and earnings.
Hyve, which is a subsidiary of TD Synnex focused on custom servers, storage and networking for large cloud providers and enterprises building hyperscale data centers, saw gross billings growth of over 50 percent in the fourth fiscal quarter of 2025, said Patrick Zammit, president, CEO and director of TD Synnex, which has dual headquarters in Clearwater, Fla., and Fremont, Calif.
Zammit, during his prepared remarks to analysts during the company’s fourth fiscal quarter 2025 quarterly financial conference call Thursday, said that Hyve was a standout in a quarter in which the distributor as a whole saw record gross billings and non-GAAP earnings.
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“Over the full year, our business, excluding Hyve, increased its gross billings in the high single digits year over year, while improving both its gross margin and operating margin profile,” he said. “Additionally, Hyve grew its gross billings double digits and well above our expectations and has made further progress expanding its set of offerings and diversifying its customer base.”
Hyve overall exceeded expectations thanks to the boom in data center infrastructure, Zammit said.
“Hyve experienced another strong quarter with gross billings increasing by more than 50 percent year over year and ODM/CM [original design manufacturing and custom manufacturing] gross billings increasing 39 percent year over year, driven by sustained broad-based demand in cloud data center infrastructure from our hyperscaler customers,” he said. “Hyve’s operating income also grew meaningfully year over year and continues to become a larger portion of our overall mix.”
TD Synnex and Hyve continue to experience sizable growth benefiting from broad-based demand for cloud data center infrastructure across hyperscaler customers, Zammit said.
“We believe that we are very well positioned to continue to get more opportunities that showcase our ability to support a wide breadth of programs for our customers,” he said. “Our customers are turning to us for, among other things, our production flexibility, favorable U.S. footprint, ability to co-develop complex solutions, and secure supply chain. These differentiators position us to continue to be a trusted partner in the assembly and deployment of complete rack-level systems across all market environments through time.”
For TD Synnex as a whole, the fourth fiscal quarter was one of strength, with revenue growing across all geographies, Zammit said.
- Steady growth across all regions and key technologies in North America was supported by demand across each of TD Synnex’s key customer segments, prioritization of increased security requirements, and ongoing shifts toward complex multi-cloud architectures, he said.
- Europe grew faster than anticipated as customers prioritized infrastructure software, PC device upgrades and modernization of aging infrastructure.
- Asia-Pacific and Japan saw growth from rapid cloud expansion, PC device upgrades, accelerating AI development and strong demand from fast digitizing economies.
- Latin America delivered double-digit top-line momentum with strong engagement across TD Synnex’s portfolio and customer base, he said.
“Looking ahead, I am bullish on the long-term value proposition of Hyve and IT distribution,” Zammit said. “We believe the untapped market opportunities in front of us in both businesses remain substantial as we aim to service a greater portion of the overall IT market through time.”
When asked during the question-and-answer period following his prepared remarks about the prospects for Hyve going forward, Zammit said the company continues to invest in expanding the capabilities and capacity of Hyve.
“We are very active in bidding on new programs with our existing customers and potential new customers. I would say that thanks to the investments we’ve made, especially in engineering and some of the differentiators of Hyve in the market, we are making very good progress on winning some new programs and potentially new customers. Now I would say that those programs take some time to ramp. … But going forward, yes, I would say we continue to make good progress and are confident about the prospects.”
TD Synnex By The Numbers
For its fourth fiscal quarter 2025, which ended Nov. 30, TD Synnex reported total revenue of $17.38 billion, up 9.7 percent over the $15.85 billion the company reported for its fourth fiscal quarter 2024.
Revenue beat analyst expectations by $450 million, according to Seeking Alpha.
This included Americas revenue of $9.5 billion, up 2.9 percent; Europe revenue of $6.5 billion, up 19.1 percent; and Asia-Pacific and Japan revenue of $1.4 billion, up 24.7 percent.
TD Synnex also reported GAAP net income of $248.4 million, or $3.04 per share, up from last year’s $194.8 million, or $2.29 per share. On a non-GAAP basis, the distributor reported net income of $313.0 million, or $3.83 per share, up from last year’s $263.4 million, or $3.09 per share.
Non-GAAP earnings beat analyst expectations by 10 cents per share, according to Seeking Alpha.
For its full fiscal year 2025, TD Synnex reported total revenue of $62.51 billion, up 6.9 percent over the $58.45 billion the company reported for fiscal 2024.
TD Synnex also reported full fiscal year GAAP net income of $827.7 million, or $9.95 per share, up from last year’s $689.1 million, or $7.95 per share. On a non-GAAP basis, the distributor reported net income of $1.10 billion, or $13.19 per share, about flat with last year’s net income but up from last year’s $11.68 per share.
Looking Ahead
TD Synnex Thursday said it expects first fiscal quarter 2026 revenue to be in the range of $15.1 billion to $15.9 billion. This compares to its first fiscal quarter 2025 revenue of $14.5 billion.
The distributor also expects GAAP net income of between $166 million and $206 million, or $2.05 to $2.55 per share, and non-GAAP net income of between $243 million and $283 million, or $3.00 to $3.50 per share.
